(RTTNews) - A Labor Department report issued Thursday indicated that first-time applications for U.S. unemployment benefits declined unexpectedly in the week ending July 11th.

The Labor Department reported that initial jobless claims dropped to 208,000, down 8,000 from the prior week's revised figure of 216,000.

Analysts had forecasted claims would climb to 220,000 from the originally reported 215,000 in the previous week.

Thanks to the surprise decline, claims reached their lowest point since recording 199,000 in the week ending May 2nd.

"Initial jobless claims reached their lowest level since May, aligning with the subdued and steady layoff pace that has characterized the labor market lately," noted Matthew Martin, Senior U.S. Economist at Oxford Economics.

He further explained, "Reduced summer shutdowns at automakers for retooling this year accounted for much of the drop in seasonally adjusted claims."

The report noted that the steadier four-week moving average also slipped to 214,250, down 4,750 from the prior week's revised average of 219,000.

The Labor Department added that continuing claims, which track ongoing unemployment support recipients, decreased by 16,000 to 1.805 million in the week ending July 4th.

The four-week moving average of continuing claims edged higher to 1,811,000, up 1,250 from the previous week's revised average of 1,809,750.

"Solid nonfarm payroll growth amid tight labor-supply conditions should lead to reduced continued claims in coming weeks," said Martin.

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